You decide to borrow $100,000 with a choice of two 4-year loans:

Plan A requires quarterly payments of $3,100 for the first year, $7,100 for the second and third year, and $11,100 for the fourth year.

Plan B requires quarterly payments of $11,000 for the first year, $7,000 for the second and third year, and $3,000 for the fourth year.

{a} Compute the APR and EAR of both loans.

{b} Which loan should you take and why?